Your embroidery will have four colors in it: White, black, the color you choose for your text and the RGB complement of that color.

1. Open a new image and fill the Background layer with white.
   
   
2. Use the Rectangle selection tool and select about half the image width and full image length and fill the selection with black. This doesn't have to be exact. This is to see what other color your embroidery will have.
   
   
   
   
   
3. Make the foreground color the color you want your initial text - I chose a dark red color - and type your text. Use the Move tool to put the text in the center of the image. Again, it doesn't have to be exact. Make sure there is plenty of space around your text.
   
   
4. Set the Layer Mode of your text to Difference and you will see the four colors that will be in your embroidery.
   If you want to change your text color, lock the transparency on the text layer and fill with another color.
   
   
   
   
   
5. When you have made your final color choice, change the text Layer Mode back to Normal.
   
   
6. If you want to add something else to the text layer, make a new transparent layer and add what you like. I used the Paintbrush to make a smiley.
   
   
7. Select the black and white background layer and fill it with white.
   
   
8. Merge your text layer down to the white layer.
   
   
9. Filters > Artistic > Predator.
   You now have an image with a black background and your embroidery. The image has a selection around it but don't bother with unselecting. You are going to make another selection.
   
   
10. Select the glow layer.
    
    
11. Use the Fuzzy Select Tool and select the black background area in the layer. If your text is touching somewhere and has background that isn't selected or centers of closed letters, hold down the Shift key and click those unselected background areas.
    
    
12. Once you have the black background selected:
    Select > Shrink by 2.
    Then Select > To Path.
    
    
13. Now you are going to change the path.
    Select > None.
    
    
14. Select the Paths tab in the Layers Window.
    Double-click the path Preview window and the path and it's nodes will be visible.
    There will be nodes in each corner. Move those nodes outside the image onto the gray canvas. The image shows that I have moved two of them; the other two need to be moved, too.
    
    
    
    
15. After you have done that press the B key and the path nodes no longer show.
    
    
16. Select the Layers tab.
    
    
17. Select > From Path.
    
    
18. Colors > Color to Alpha > Change the color to Black (000000), and click OK.
    
    
    
    
    
19. Your embroidery is finished.
    Delete the background layer with your original text on it.

cute, lol. I think I needed either a rounder font or to change a few settings as my straight lines didn't 'embroider' too well.

Looks good! Thanks for trying my tut.

I found with this one a regular to thin font works better. Fat ones just get fatter and the edges run together.

You might want to try it with Sans just to see how it works for you or another thinner font.

nice Toni,
yeah I think a nice round text would work better too. I am going to try it.

thinner and more curvy objects...

That is cool, 2-ton. I LOVE the way you put in the background.

come to think of it, I should put it on some x-stitch fabric...(disregard the bits of white I didn't remove, lol)

Whoa! Perfect! Looks like you embroidered it.

I used my nickname here from another forum
origonian,thanks again for sharing this tutorial